Belo Monte dam moves step closer

Brazil's government has granted an environmental licence for the construction of a controversial hydro-electric dam in the Amazon rainforest.

Environmental groups say the Belo Monte dam will cause devastation in a large area of the rainforest and threaten the survival of indigenous groups.

However, the government says whoever is awarded the project will have to pay $800m to protect the environment.

The initial approval was a key step before investors could submit bids.

Resignations

The proposal to build a hydro-electric dam on the Xingu river, a tributary of the Amazon in the northern state of Para, has long been a source of controversy.

The initial project was abandoned in the 1990s amid widespread protests both in Brazil and around the world.

The government says the scheme has been modified to take account of fears that it would threaten the way of life of the indigenous peoples who live in the area.

Brazilian Environment Minister Carlos Minc revealed that those who win the bidding process to build and operate Belo Monte will have to pay millions of dollars to protect the environment and meet 40 other conditions.

However, critics say diverting the flow of the Xingu river will still lead to devastation in a large area of the rainforest and damage fish stocks.

They say the lives of up to 40,000 people could be affected as 500 sq km of land would be flooded.

When it is completed, Belo Monte would be third largest hydro-electric dam in the world, after the Three Gorges in China and Itaipu, which is jointly run by Brazil and Paraguay. It is expected to provide electricity to 23 million Brazilian homes.

With Brazil's economy continuing to show signs of growth, ministers say hydro-electric plants are a vital way to ensure power supplies over the next decade - and at least 70 dams are said to be planned for the Amazon region.

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Independent Review Highlights the True Costs of Belo Monte Dam

What would be the true environmental, social, and economic costs of Belo Monte Dam? New studies by a group of independent experts have highlighted the serious consequences the dam would have for the region, its inhabitants, and ecosystems of the Amazon rainforest.

Belo Monte, which with an installed generating capacity of 11,231 MW would be the world's third largest dam, and its complex array of two powerhouses, artificial canals, huge dykes, two reservoirs, spillways, ports, roads, and work camps would devastate more than 1,500 sq km of the Xingu River region of the central Brazilian Amazon.

The vast mosaic of indigenous reserves and protected areas of the Xingu would be in harm's way, and according to the experts, more than double the official figure of 19,000 people would likely have to moved to make way for the dam. A 100 km stretch of what is known as the "Big Bend" of the Xingu (number one on the map) would dry up when most of the Xingu's flow is diverted to the power house (casa de força).

Opposition has been growing since the first Xingu indigenous gathering in Altamira in 1989 and the second protest in 2008, and recently activists and community leaders met with President Lula to voice their concerns. Lula promised to review the project.

But, a strong police presence at recent public hearings on Belo Monte, and the government's insistence on offering the concession for Belo Monte by year's end have made it clear that Brazil is determined to push forward with the dam no matter what the cost.

The Belo Monte experts panel was convened to respond to the uncertainties facing local communities in the Xingu region. 40 specialists in diverse fields analyzed the project feasibility and environmental impact studies. Their conclusions were delivered to licensing authorities and public attorneys, and will be made accessible to the people of the Xingu in a simplified text.

http://www.internationalrivers.org/node/4729